Results:Although the project is in its initial stages, the Coast Guard
expects to achieve a total cost-savings of $260,756 in 20 years.

Contact Information:Listed at the end of the case study.

While a complete heating, ventilation, and air-conditioning (HVAC) system
overhaul might seem expensive, federal officials at the U.S. Coast Guard's
Administrative Office Building (AOB) in Portsmouth, Virginia, have turned
it into a potentially money saving solution. This 141,300-square-foot
building serves approximately 425 U.S. Coast Guard, U.S. Postal Service,
and Naval Hospital employees. In 1991, the U.S. Coast Guard used Federal
Energy Management Program (FEMP) recommendations to implement a complete lighting retrofit and motor replacement
project. This project achieved a great deal of success, so when the Coast
Guard determined that the building needed a complete HVAC overhaul, they
saw a new opportunity to incorporate Executive Order 13123 [PDF], which mandates energy-efficient systems, and save
money at the same time.

Purchasing Process

The Coast Guard's goals for the HVAC project were to reduce the cost
of the existing cooling system, rebalance the air system, and implement
a new cooling load. Because of the size and cost, the Coast Guard relied
on the U.S. General Services
Administration (GSA) to
find a contractor. GSA awarded an architectural firm with a 2-year design-build
contract that directs the contractor to develop the most cost-effective
HVAC energy management system.

The AOB contract does not specify particular equipment or products, but
it contains environmental criteria from EO
12902, EO
13101, and FEMP guidelines
for energy-efficient products that the contractor must follow when making
selections. The contractor, aware of EO requirements from previous work
with other government agencies, makes the selections based on cost and
environmental characteristics. The contractor's engineers then must meet
with a team composed of members from GSA, the Coast Guard, subcontractors,
and the air-conditioning firm to approve the contractor's selections and
ensure they meet the cost savings and energy management goals of a 15
to 20 percent reduction in heating and cooling costs per year. Roger Olsen,
AOB building manager, says it's important to collaborate with the contractor
and be clear about the agency's needs. "We tell them, Here's
what we need. How do we do it?'"

Use of Energy-Efficient Products

The Coast Guard and the contractor have been working together since the
spring of 1999 on the HVAC overhaul, which will take several years to
complete. As a first step, the contractor surveyed the existing HVAC system
and the overall AOB facility and came up with immediate and future recommendations
to improve energy efficiency and save money. They started by shutting
down the coolers on the weekends and after normal working hours to reduce
further wear and tear on the current system. The contractor also took
calibrations to maximize the effectiveness of newly installed dampers
and controls. Replacing the air handlers, pumps, motors, induction units,
and controls for the HVAC system will be the next step. Once completed,
the plan developed by the contractor will result in a heating load reduction
of 807,000 British thermal units per hour (Btu) and a reduction in cooling
load of 49.6 tons (588,000 Btu).

Cost Considerations

In years past, the Coast Guard excluded environmental and energy-efficient
products from purchasing decisions because it found that these products
were more expensive, installation costs were high, and the systems were
not dependable. Now, encouraged by the EOs and the trend toward energy
efficiency, technology is better and more dependable. Also, cost concerns
are alleviatedthe Coast Guard expects to realize significant savings
in the long run as a result of the HVAC system overhaul. The Coast Guard
estimates it will receive a total savings of $260,756 in energy costs
within 20 years. Reducing the size of the equipment alone will save $71,536.
When the original HVAC system was installed, "the machines were the
size of Cadillacs; people weren't worried about energy costs," Olsen
said. "Now we're paying more attention to energy management, and
smaller machines are more efficient. They do the same thing with less
[energy]."

Lessons Learned

The Coast Guard recommends that purchasers familiarize themselves with
the types of environmental and energy-efficient products that are available
and communicate this knowledge to contractors. "Contractors often
will try to sell you what they make the most money from. It's simply the
nature of their business," Olsen explained. "We stood firm with
the type of equipment we were looking for and the results we expected
and demonstrated that we knew about what was out there. Now they are getting
us what we want for a decent price."

Because each project's needs are different, and because of the rate at
which technology improves, the Coast Guard suggests looking at generic
specifications and building on them to suit individual project needs.
Olsen recommends keeping abreast of current products and technologies
by reading periodicals such as Energy
Users News and Maintenance
Technology,
as well as supplier and vendor brochures and catalogs. He also recommends
looking at the U.S.
Department of Energy's (DOE's) book, Buying Energy Efficient Products
and contacting vendors directly for product specifications.

Relying on GSA to select the contractor greatly simplified the procurement
process for the Coast Guard. Because maintenance staff must approve the
equipment and products selected by the contractor, however, the Coast
Guard still maintains control over the selections and is able to ensure
the facility's energy management needs are met and expected cost savings
are achieved.

Future Projects

The Coast Guard also is in the beginning stages of renovating the lobby
of the Portsmouth administrative building in collaboration with GSA and
an architectural firm. Although the project is mostly cosmetic, in keeping
with its commitment to comply with the EOs, the Coast Guard will again
specify that the contractor select environmental products such as low
volatile organic compound paints and energy-efficient lighting.